Years Ended August 31,
2008 2007 2006
------------ ------------ ------------
Total revenues $ 282,400 $ 265,700 $ 271,700
Total cost of revenues (166,000) (165,200) (73,900)
------------ ------------ ------------
Gross margin 116,400 100,500 197,800
Total operating expenses (2,609,600) (2,754,800) (1,556,500)
Other (expense) income
Including imputed interest of
$4.4 million, $4.7 million and
$0, respectively (4,433,500) (4,260,400) 565,800
------------ ------------ ------------
Net loss $ (6,926,700) $ (6,914,700) $ (792,900)
============ ============ ============
Weighted average shares
outstanding (basic and diluted) 20,188,675 18,589,737 14,693,585
============ ============ ============
Loss per share $ (0.34) $ (0.37) $ (0.05)
============ ============ ============
Fiscal 2008 revenues increased over fiscal 2007 revenues mainly as a result
of higher water usage fees and higher wastewater service fees.
Operating expenses decreased from 2007 to 2008 as a result of (i)
management and employee wages remaining unchanged and no incentive
compensation being paid in 2008, (ii) an $84,300 reduction in certain
professional fees due to an SEC consultation in 2007 not incurred in 2008,
and (iii) a reduction in public entity costs of approximately $92,900
mainly due to the elimination of franchise fees to the State of Delaware as
a result of our reincorporation in Colorado.
However, these decreases were offset by us incurring approximately $223,600
in consulting fees in 2008 related to ongoing discussions with the Land
Board and Lend Lease over water and wastewater services for the proposed
development at the Lowry Range as opposed to $39,200 in 2007.
As will be further explained in our Form 10-K to be filed with the SEC on
November 14, 2008, the results reported above were impacted by the
following items that do not require the use of current assets:
Years ended August 31,
2008 2007
------------ -----------
Imputed expenses or non-cash expenses:
Imputed Interest on the Tap Participation Fee $ 4,393,000 $ 4,669,700
Loss (gain) on extinguishment of contingent
obligations 273,700 (271,100)
Depreciation and depletion 381,300 366,100
Stock based compensation expense 351,500 287,300
------------ -----------
Total imputed and non-cash expenses $ 5,399,500 $ 5,052,000
============ ===========
Because these items do not require the use of current assets, management
does not include these items in its analysis of the financial results or
how we allocate our resources. Because of this, we deemed it meaningful to
provide a non-GAAP disclosure of the impact of these significant items on
our financial results. Adjusting our US GAAP net loss to exclude the
expenses described above, our net loss for the years ended August 31, 2008
and 2007, respectively, would have been:
Years ended August 31,
2008 2007 Change
------------ ------------ ------------
Net losses as reported $ (6,926,700) $ (6,914,700) $ (12,000)
Imputed and non-cash
items described above 5,399,500 5,052,000 $ 347,500
------------ ------------ ------------
As adjusted net losses $ (1,527,200) $ (1,862,700) $ 335,500
============ ============ ============
Financial Position Data
August 31, August 31,
2008 2007
------------- -------------
Current assets $ 5,502,200 $ 7,288,400
------------- -------------
Total assets $ 109,899,400 $ 111,891,900
------------- -------------
Current liabilities $ 163,900 $ 183,300
------------- -------------
Total liabilities $ 56,731,600 $ 54,047,100
------------- -------------
Total stockholders' equity $ 53,167,800 $ 57,844,800
------------- -------------
We will host a conference call to discuss the results on November 17, 2008
at 2 pm Mountain. The call will be hosted by our President, Mark W.
Harding. Call details are presented below.
CALL INFORMATION
What: Fiscal year end August 31, 2008 Financial Release
When: November 17, 2008 at 2:00 pm Mountain
To listen: Click on the link posted on the Company's website:
www.purecyclewater.com
Log-on 5 minutes early in case downloads are required.
Call in Number: Toll free: (866) 314-4483
Passcode: 93536889
REPLAY INFORMATION
The call will be available for replay until 9:59 p.m. on
November 24, 2008:
Toll free: (888) 286-8010
Passcode: 54264249
Company Information
Pure Cycle owns water assets in several river basins in the State of
Colorado as well as certain aquifers in the Denver, Colorado metropolitan
area. Pure Cycle provides water and wastewater services to customers
located in the Denver metropolitan area including the design, construction,
operation and maintenance of water and wastewater systems.
Additional information including our recent press releases and Annual
Reports are available at www.purecyclewater.com, or you may contact our
President, Mark W. Harding, at 303-292-3456 or at info@purecyclewater.com.
Contact Information: Contact: Mark W. Harding President 303-292-3456